SPAIN’S economy will grow by 1.2% this year, according to predictions announced today by the central bank.
The financial forecasts indicate a gradual and modest recovery, with the gross domestic product growing by a further 1.7% in 2015.
“After the start of the recovery observed in the second half of 2013, we predict that the Spanish economy will continue to progress through this year,” the Bank of Spain said in its monthly bulletin.
If the predictions are accurate, Spain is set to see its most dramatic economic growth since 2007, shortly before a property crash threw the nation into a five-year recession.
The growth forecast will not be sufficient to dramatically reduce unemployment levels, which reached a peak of 26% at the end of 2013, but improvements have been predicted.
The Bank of Spain estimates that the unemployment rate will ease to 25% this year, and 23.8% in 2015.
But Prime Minister Mariano Rajoy’s government has a less optimistic outlook for the Eurozone’s fourth largest economy.
They have predicted a growth of 1.0% in 2014, with a further growth of 1.5% in 2015.
But both agree that the first months of 2014 indicate the forecasted growth is on track.
“Economic indicators for the first quarter of 2014 point in general to a continuation of the gradual improvement in activity,” the Bank of Spain concluded.